The U.S. Securities and Exchange Commission will decide on Wednesday whether to adopt new rules for advisors to hedge funds and private-equity funds aimed at increasing transparency, competition and efficiency in the $25 trillion marketplace, Reuters reported. The SEC will vote on a proposal to update so-called Form PF, which was put in place following the financial crisis of 2008-2009 to monitor risks in the private-fund sector, to boost the quality of disclosures by large funds about their investment strategies and leverage. "Since the SEC put in place Form PF 12 years ago, a lot has changed," SEC Chair Gary Gensler said at a conference held by the Managed Funds Association on Tuesday. "The proposal's new transparency would relate to fees, expenses, performance, and side letters," he said. The rule changes would require private-fund advisers, such as private-equity firms and hedge funds, to disclose quarterly details about their fees and expenses, in a bid to shed light on the rapidly growing market sector.
